In a research note released today, KGI Securities analyst Ming-Chi Kuo claims both the 4.7-inch and 5.5-inch iPhone 6 will be announced next week at Apple's iPhone press event. Kuo believes Apple will stagger the launch with the 4.7-inch model arriving in mid-September and the 5.5-inch model following 5 to 10 weeks later.

Kuo believes both the 4.7-inch and 5.5-inch models will face supply constraints at launch as demand likely will outpace Apple's ability to manufacture the device. Labor shortages at Foxconn will impact the production of the 4.7-inch iPhone 6, while the 5.5-inch faces an additional hurdle due to production issues with assembly and other components.

In line with earlier reports, Kuo says Apple will boost the internal storage of the iPhone to 128 GB. Both the 4.7-inch and 5.5-inch models will ship with this higher capacity option. It is unclear whether Apple will add the 128 GB as a fourth storage option or drop the lower 16 GB model, selling the iPhone 6 only in 32, 64, and 128 GB capacities, although a 16 GB module has been seen on a leaked logic board and the earlier leaked schematic had referred to 16, 64, and 128 GB options..

Though he previously has stated select premium iPhone 6 handsets will ship with a sapphire glass option, Kuo, in this latest report, addresses the possibility of a sapphire cover, which he claims Apple is abandoning due to drop test issues. Kuo also claims the iPhone will have a programmable, side-mounted power button and an internal barometer sensor for navigation and health-related purposes.

(1) Due to drop test issues, neither 4.7-inch nor 5.5-inch iPhone 6 will have a sapphire cover lens, we believe; (2) as Apple has strong bargaining power on NAND Flash price, and in a bid to meet the large capacity demand of consumers as well as to differentiate themselves from competing models, both 4.7-inch and 5.5-inch iPhone 6 will come with 128GB; (3) a built-in barometer can provide more indoor navigation applications and health-management applications relating to spirometry; and (4) we predict (discussed in an earlier report) that the power key will be moved from the upper position to the side. We now further predict that the power key could be programmable to be integrated with specific applications, giving more input options in addition to being a power switch.

Apple's iPhone 6 event will be held on Tuesday, September 9 at the Flint Center in Cupertino, California. Besides the possibility of a 128GB model, Apple may also add a new A8 processor, an improved camera with image stabilization and an enhanced Touch ID to its next generation iPhone.

Dropping the Sapphire lens cover doesn't make sense to me; unless they found a better solution to prevent scratches.

What if the current, significantly cheaper, Gorilla Glass version did a much better job of not shattering on the drop tests?

Glad to see the 128GB option (if it pans out). It would be good for the top end phone to drop 16GB and have the new "low end" (prior year) phones have 16GB instead of 8GB (which just can't be very useful).

Don't get too excited about 128GB. Remember, this is Kuo. We can't laugh at his predictions and then get excited about them when it's something we want. The guy is inaccurate across the board, so his guesses are all pulled out of his ass.

I still find it hard to believe that Apple will announce both models at the same time only to make one available at launch and then wait weeks/months to release the other. I wonder how many people would hold off and wait for the 5.5" instead. I know I would be one of those.